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Micron Insight brings you stories about how technology transforms information to enrich lives. Learn, imagine, innovate, solve, and gain insight on the technology trends of today and tomorrow from thought leaders around the world. We've built our technological expertise for over 40 years and now we are sharing that expertise with you. Learn how intelligence is being accelerated to enrich life in science and medicine, at the edge, and through the speed of data access and analysis. Accelerate your Intelligence at Micron Insight.

Transforming How the World Uses Information

For nearly 40 years, we have been instrumental to the world's most significant technology advancements, delivering optimized memory and storage systems for a broad range of applications. Our team is transforming how the world uses information delivering solutions for the world's toughest computing and storage challenges.

Press Releases

Micron Technology, Inc., Reports Results for the Fourth Quarter and Full Year of Fiscal 2018

BOISE, Idaho, Sept. 20, 2018 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ: MU) today announced results of operations for its fourth quarter and full year of fiscal 2018, which ended August 30, 2018.

Fiscal Q4 2018 highlights

Revenues of $8.44 billion, up 38 percent compared with the same period last year

GAAP net income of $4.33 billion, or $3.56 per diluted share

Non-GAAP net income of $4.31 billion, or $3.53 per diluted share

Operating cash flow of $5.16 billion, compared with $3.20 billion for the same period last year

Fiscal 2018 highlights

Revenues of $30.39 billion, up 50 percent compared with the prior fiscal year

GAAP net income of $14.14 billion, or $11.51 per diluted share

Non-GAAP net income of $14.70 billion, or $11.95 per diluted share

Operating cash flow of $17.40 billion, compared with $8.15 billion for the prior fiscal year

"Micron delivered an exceptional fourth quarter and capped record fiscal year results by becoming the second largest semiconductor company in the U.S.," said Sanjay Mehrotra, President and CEO of Micron Technology. "In the fourth quarter, we set revenue records across all our major markets, from automotive and industrial to mobile and cloud datacenters. The secular and diversified growth drivers in our industry combined with accelerating pace of transformation of the new Micron form a tremendous catalyst for us to create enduring value for our customers and investors in 2019 and the years ahead."

Quarterly Financial Results

(in millions, except per share amounts)

GAAP (1)

Non-GAAP (2)

FQ4-18

FQ3-18

FQ4-17

FQ4-18

FQ3-18

FQ4-17

Revenue

$

8,440

$

7,797

$

6,138

$

8,440

$

7,797

$

6,138

Gross margin

$

5,151

$

4,723

$

3,112

$

5,179

$

4,750

$

3,147

percent of revenue

61.0%

60.6%

50.7%

61.4%

60.9%

51.3%

Operating income

$

4,377

$

3,953

$

2,502

$

4,439

$

4,017

$

2,546

percent of revenue

51.9%

50.7%

40.8%

52.6%

51.5%

41.5%

Net income attributable to Micron

$

4,325

$

3,823

$

2,368

$

4,313

$

3,898

$

2,386

Diluted earnings per share

$

3.56

$

3.10

$

1.99

$

3.53

$

3.15

$

2.02

Annual Financial Results

(in millions, except per share amounts)

GAAP (1)

Non-GAAP (2)

FY 18

FY 17

FY 18

FY 17

Revenue

$

30,391

$

20,322

$

30,391

$

20,322

Gross margin

$

17,891

$

8,436

$

17,994

$

8,639

percent of revenue

58.9%

41.5%

59.2%

42.5%

Operating income

$

14,994

$

5,868

$

15,243

$

6,232

percent of revenue

49.3%

28.9%

50.2%

30.7%

Net income attributable to Micron

$

14,135

$

5,089

$

14,700

$

5,648

Diluted earnings per share

$

11.51

$

4.41

$

11.95

$

4.96

Revenues for the fourth quarter of 2018 were 8 percent higher compared to the third quarter of 2018, reflecting increased demand broadly across our products and end markets. Our overall gross margin was 61.0 percent for the fourth quarter of 2018 compared to 60.6 percent in the third quarter benefiting from strong execution across our product portfolio.

Investments in capital expenditures, net of amounts funded by partners, were $2.06 billion for the fourth quarter of 2018 and $8.20 billion for the full year of 2018, which resulted in adjusted free cash flows(3) of $3.09 billion for the fourth quarter of 2018 and $9.20 billion for the full year of 2018. We repurchased or converted $2.23 billion principal amount of our debt during the quarter and $6.96 billion for the full year of 2018, lowering our total carrying value of debt to $4.64 billion exiting the fiscal year. We ended the fourth quarter in a record net cash position of $2.72 billion with cash, marketable investments, and restricted cash of $7.36 billion.

We will host a conference call on Thursday, September 20, 2018 at 2:30 p.m. MT to discuss our financial results. The call, audio, and slides will be available online at investors.micron.com. A webcast replay will be available on our website until September 20, 2019. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-859-2056 (conference number: 5685754) beginning at 5:30 p.m. MT, Thursday, September 20, 2018 and continuing through Thursday, September 27, 2018. For Investor Relations and other company updates, follow @MicronTech on Twitter at twitter.com/MicronTech.

We are an industry leader in innovative memory and storage solutions. Through our global brands — Micron®, Crucial® and Ballistix® — our broad portfolio of high-performance memory and storage technologies, including DRAM, NAND, NOR Flash and 3D XPoint™ memory, is transforming how the world uses information to enrich life. Backed by 40 years of technology leadership, our memory and storage solutions enable disruptive trends, including artificial intelligence, machine learning, and autonomous vehicles, in key market segments like cloud, data center, networking and mobile. Our common stock is traded on the NASDAQ under the MU symbol. To learn more about Micron Technology, Inc., visit micron.com.

The Micron logo and Micron symbol are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements regarding the industry and our strategic position and financial results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, specifically our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at www.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

(1) GAAP represents U.S. Generally Accepted Accounting Principles.(2) Non-GAAP represents GAAP excluding the impact of certain activities which our management excludes in analyzing our operating results and understanding trends in our earnings. Non-GAAP also includes the impact on shares used in per share calculations of our outstanding capped call transactions and from the exclusion of stock-based compensation. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.(3) Adjusted free cash flow consists of cash provided by operating activities of $5.16 billion for the fourth quarter of 2018 and $17.40 billion for the full year of 2018 less investments in capital expenditures, net of amounts funded by partners, for the respective periods.

MICRON TECHNOLOGY, INC.

CONSOLIDATED FINANCIAL SUMMARY

(in millions except per share amounts)

4th Qtr.

3rd Qtr.

4th Qtr.

Year Ended

August 30,
2018

May 31,
2018

August 31,
2017

August 30,
2018

August 31,
2017

Net sales

$

8,440

$

7,797

$

6,138

$

30,391

$

20,322

Cost of goods sold

3,289

3,074

3,026

12,500

11,886

Gross margin

5,151

4,723

3,112

17,891

8,436

Selling, general, and administrative

215

211

193

813

743

Research and development

567

603

447

2,141

1,824

Other operating (income) expense, net

(8

)

(44

)

(30

)

(57

)

1

Operating income

4,377

3,953

2,502

14,994

5,868

Interest income (expense), net

(16

)

(44

)

(132

)

(222

)

(560

)

Other non-operating income (expense), net (1)

(15

)

(193

)

(49

)

(465

)

(112

)

Income tax (provision) benefit (2)

(20

)

109

47

(168

)

(114

)

Equity in net income (loss) of equity method investees

—

(2

)

1

(1

)

8

Net (income) attributable to noncontrolling interests

(1

)

—

(1

)

(3

)

(1

)

Net income attributable to Micron

$

4,325

$

3,823

$

2,368

$

14,135

$

5,089

Earnings per share

Basic

$

3.73

$

3.30

$

2.13

$

12.27

$

4.67

Diluted

3.56

3.10

1.99

11.51

4.41

Number of shares used in per share calculations

Basic

1,159

1,159

1,109

1,152

1,089

Diluted

1,216

1,235

1,187

1,229

1,154

CONSOLIDATED FINANCIAL SUMMARY, Continued

As of

August 30,
2018

May 31,
2018

August 31,
2017

Cash and short-term investments

$

6,802

$

7,071

$

5,428

Receivables

5,478

4,912

3,759

Inventories

3,595

3,369

3,123

Total current assets

16,039

15,499

12,457

Long-term marketable investments

473

487

617

Property, plant, and equipment, net

23,672

22,705

19,431

Restricted cash

81

119

107

Total assets

43,376

41,845

35,336

Accounts payable and accrued expenses

4,611

3,998

3,664

Current debt (1)

859

1,454

1,262

Total current liabilities

5,754

5,883

5,334

Long-term debt (1)

3,777

5,890

9,872

Total Micron shareholders' equity (3)

32,294

28,649

18,621

Noncontrolling interests in subsidiaries

870

869

849

Total equity

33,164

29,518

19,470

Year Ended

August 30,
2018

August 31,
2017

Net cash provided by operating activities

$

17,400

$

8,153

Net cash provided by (used for) investing activities

(8,216

)

(7,537

)

Net cash provided by (used for) financing activities

(7,776

)

349

Depreciation and amortization

4,860

3,986

Investments in capital expenditures

(9,085

)

(5,253

)

Acquisition of Inotera

—

(2,634

)

Repayments of debt

(10,194

)

(2,558

)

Proceeds from issuance of stock (3)

1,655

142

Proceeds from issuance of debt

1,009

3,311

In the fourth quarter of 2018, we prepaid or repurchased debt with an aggregate principal amount of $2.00 billion and recognized non-operating losses of $9 million. In addition, we settled convertible notes with an aggregate principal amount of $228 million for cash of $1.27 billion and recognized non-operating gains of $25 million. As of August 30, 2018, $35 million of aggregate principal amount of our convertible notes had converted but will not settle until the first quarter of 2019. As a result of the unsettled conversions, the carrying value of debt increased by $132 million as of August 30, 2018 and we recognized non-operating losses of $15 million in the fourth quarter of 2018.

In the third quarter of 2018, we prepaid debt with an aggregate principal amount of $2.08 billion and recognized non-operating losses of $42 million. In addition, we repurchased or settled convertible notes with an aggregate principal amount of $228 million for cash of $1.11 billion and recognized non-operating losses of $32 million. In the second quarter of 2018, we settled convertible notes with an aggregate principal amount of $65 million for cash of $295 million. In the first quarter of 2018, we redeemed notes with an aggregate principal amount of $2.25 billion for cash of $2.42 billion and recognized non-operating losses of $190 million.

On December 22, 2017, the United States enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act") which lowers the U.S. corporate income tax rate from 35% to 21% and significantly affects how income from foreign operations is taxed in the United States. As a result of our fiscal year-end, our U.S. statutory federal rate was 25.7% for 2018 (based on the 35% corporate rate through December 31, 2017 and 21% from that date through the end of fiscal year 2018) and will be 21% for subsequent years. The Tax Act imposed a one-time transition tax in 2018 on the higher of accumulated foreign income, as determined as of November 2, 2017 or December 31, 2017 (the "Repatriation Tax"); provided a U.S. federal tax exemption on foreign earnings distributed to the United States; and, beginning in 2019, creates a new minimum tax on certain foreign earnings in excess of a deemed return on tangible assets (the "Foreign Minimum Tax"). The Tax Act allows us to elect to pay any Repatriation Tax due in eight annual interest-free payments in increasing amounts beginning in December 2018.

The Securities and Exchange Commission Staff Accounting Bulletin No. 118 allows the use of provisional amounts (reasonable estimates) if our analyses of the impacts of the Tax Act has not been completed when our financial statements are issued. The provisional amounts below were revised during 2018 and represent reasonable estimates of the effects of the Tax Act for which the analysis is not yet complete. Our income tax (provision) benefit consisted of the following:

Provisional estimate for the release of the valuation allowance on the net deferred tax assets of our U.S. operations

—

—

—

1,337

—

Utilization of and other changes in net deferred tax assets of MMJ, MMT, and MTTW

10

(35

)

106

(68

)

54

Other income tax (provision) benefit

(113

)

(78

)

(59

)

(274

)

(168

)

$

(20

)

$

109

$

47

$

(168

)

$

(114

)

In October 2017, we issued 34 million shares of our common stock in a public offering for $41.00 per share for proceeds of $1.36 billion, net of underwriting fees and other offering costs.

MICRON TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(in millions, except per share amounts)

4th Qtr.

3rd Qtr.

4th Qtr.

August 30, 2018

May 31, 2018

August 31, 2017

GAAP

Adj

Non-GAAP

GAAP

Adj

Non-GAAP

GAAP

Adj

Non-GAAP

Net sales

$

8,440

$

—

$

8,440

$

7,797

$

—

$

7,797

$

6,138

$

—

$

6,138

Cost of goods sold

3,289

(28

)

3,261

3,074

(27

)

3,047

3,026

(35

)

2,991

Gross margin

5,151

28

5,179

4,723

27

4,750

3,112

35

3,147

percent of revenue

61.0%

61.4%

60.6%

60.9%

50.7%

51.3%

Selling, general, and administrative

215

(13

)

202

211

(14

)

197

193

(22

)

171

Research and development

567

(14

)

553

603

(15

)

588

447

(14

)

433

Other operating (income) expense, net

(8

)

(7

)

(15

)

(44

)

(8

)

(52

)

(30

)

27

(3

)

Operating expenses

774

(34

)

740

770

(37

)

733

610

(9

)

601

Operating income (loss)

4,377

62

4,439

3,953

64

4,017

2,502

44

2,546

percent of revenue

51.9%

52.6%

50.7%

51.5%

40.8%

41.5%

Interest income (expense), net

(16

)

23

7

(44

)

23

(21

)

(132

)

32

(100

)

Other non-operating income (expense), net

(15

)

14

(1

)

(193

)

194

1

(49

)

49

—

4,346

99

4,445

3,716

281

3,997

2,321

125

2,446

Income tax (provision) benefit

(20

)

(111

)

(131

)

109

(206

)

(97

)

47

(107

)

(60

)

Equity in net income (loss) of equity method investees

—

—

—

(2

)

—

(2

)

1

—

1

Net income (loss)

4,326

(12

)

4,314

3,823

75

3,898

2,369

18

2,387

Net income (loss) attributable to noncontrolling interests

(1

)

—

(1

)

—

—

—

(1

)

—

(1

)

Net income (loss) attributable to Micron

$

4,325

$

(12

)

$

4,313

$

3,823

$

75

$

3,898

$

2,368

$

18

$

2,386

Shares used in calculations

1,216

4

1,220

1,235

3

1,238

1,187

(6

)

1,181

Diluted earnings (loss) per share

$

3.56

$

(0.03

)

$

3.53

$

3.10

$

0.05

$

3.15

$

1.99

$

0.03

$

2.02

Year Ended

Year Ended

August 30, 2018

August 31, 2017

GAAP

Adj

Non-GAAP

GAAP

Adj

Non-GAAP

Net sales

$

30,391

$

—

$

30,391

$

20,322

$

—

$

20,322

Cost of goods sold

12,500

(103

)

12,397

11,886

(203

)

11,683

Gross margin

17,891

103

17,994

8,436

203

8,639

percent of revenue

58.9%

59.2%

41.5%

42.5%

Selling, general, and administrative

813

(61

)

752

743

(88

)

655

Research and development

2,141

(57

)

2,084

1,824

(55

)

1,769

Other operating (income) expense, net

(57

)

(28

)

(85

)

1

(18

)

(17

)

Operating expenses

2,897

(146

)

2,751

2,568

(161

)

2,407

Operating income (loss)

14,994

249

15,243

5,868

364

6,232

percent of revenue

49.3%

50.2%

28.9%

30.7%

Interest income (expense), net

(222

)

101

(121

)

(560

)

125

(435

)

Other non-operating income (expense), net

(465

)

465

—

(112

)

112

—

14,307

815

15,122

5,196

601

5,797

Income tax (provision) benefit

(168

)

(250

)

(418

)

(114

)

(59

)

(173

)

Equity in net income (loss) of equity method investees

(1

)

—

(1

)

8

17

25

Net income (loss)

14,138

565

14,703

5,090

559

5,649

Net income (loss) attributable to noncontrolling interests

(3

)

—

(3

)

(1

)

—

(1

)

Net income (loss) attributable to Micron

$

14,135

$

565

$

14,700

$

5,089

$

559

$

5,648

Shares used in calculations

1,229

1

1,230

1,154

(14

)

1,140

Diluted earnings (loss) per share

$

11.51

$

0.44

$

11.95

$

4.41

$

0.55

$

4.96

MICRON TECHNOLOGY, INC.

NON-GAAP ADJUSTMENTS

(in millions)

4th Qtr.

3rd Qtr.

4th Qtr.

Year Ended

August 30, 2018

May 31, 2018

August 31, 2017

August 30, 2018

August 31, 2017

Non-GAAP adjustments

Cost of goods sold

Stock-based compensation

$

21

$

20

$

22

$

83

$

88

Flow-through of Inotera inventory step up

—

—

11

—

107

Other

7

7

2

20

8

28

27

35

103

203

Selling, general, and administrative

Stock-based compensation

13

14

22

61

75

Inotera acquisition costs

—

—

—

—

13

13

14

22

61

88

Research and development

Stock-based compensation

13

14

13

54

52

Other

1

1

1

3

3

14

15

14

57

55

Other operating (income) expense, net

Restructure and asset impairments

7

8

(27

)

28

18

Interest income (expense), net

Amortization of debt discount and other costs

23

23

32

101

125

Other non-operating income (expense)

(Gain) loss on debt repurchases and conversions

(1

)

168

37

385

100

(Gain) loss from changes in currency exchange rates

15

24

12

75

74

(Gain) loss from business acquisition activities

—

—

—

—

(71

)

Other

—

2

—

5

9

14

194

49

465

112

Income taxes

Impact of U.S. income tax reform

(83

)

(222

)

—

(174

)

—

Estimated tax effects of above, including tax benefits from stock-based compensation, and non-cash changes in net deferred income taxes

(28

)

16

(107

)

(76

)

(59

)

(111

)

(206

)

(107

)

(250

)

(59

)

Equity in net income (loss) of equity method investments

Impairment of equity method investments

—

—

—

—

16

Other

—

—

—

—

1

—

—

—

—

17

$

(12

)

$

75

$

18

$

565

$

559

The tables above reconcile GAAP to non-GAAP results, diluted shares, and diluted earnings per share. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful to understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts vary from numbers presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies.

Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with our convertible debt and MMJ creditor debt;

Gains and losses from debt repurchases and conversions;

Gains and losses from changes in currency exchange rates;

Gains and losses loss from business acquisition activities;

Impact of the U.S. income tax reform for provisional estimate of Repatriation Tax, release of U.S. valuation allowance, and remeasurement of net deferred taxes reflecting the lower U.S. corporate tax rates:

The estimated tax effects of above, including tax benefits from stock-based compensation, and non-cash changes in net deferred taxes; and

Impairments of equity method investments.

Our outstanding capped call transactions are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of our convertible notes. In periods with non-GAAP income attributable to Micron, non-GAAP diluted shares include the impact of the capped calls, based on the average share price for the period the capped calls are outstanding. Non-GAAP diluted shares are also adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.